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Automatic Millionaire
Automatic Millionaire Study Guide
10
Other
12th Grade
02/15/2013

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Term
pre-tax retirement fund
Definition
money set aside from ones pay before taxes are taken out for use at the time of retirement.
Term
mutual fund
Definition
an investment company that issues shares continuously and is obligated to repurchase them from shareholders on demand.
Term
bond
Definition
A debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate
Term
leverage
Definition
The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment
Term
interest
Definition
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate
Term
mortgage
Definition
A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments.
Term
compound interest
Definition
Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt
Term
gross income
Definition
An individual's total personal income before taking taxes or deductions into account.
Term
net worth
Definition
The amount by which assets exceed liabilities
Term
tithing
Definition
a tenth part of personal income contributed either voluntarily or as a tax for the support of the church or clergy or for charitable purposes
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